P.N.NAG, I.D.BALI, KRISHANA TANDON
BRANCH MANAGER, P. N. B. – Appellant
Versus
GURMUKH SINGH – Respondent
Mr. Justice P.N. Nag, President—This appeal raises an important question of law, whether the bank have a lien on the saving bank account of the partner under his separate account for the balance due to the bank from partnership firm and whether amount lying in the separate account of the partner can be set off against the loan secured by the partnership firm.
2. The relevant facts set out in this complaint are that the complainant has opened a Saving Bank Account No. 1142 with the opposite party “hereinafter to be referred as the Appellant” and an amount of Rs. 5762.50 was standing in his credit. The respondent was a partner with the partnership firm concern, namely Virdi Industry, Sansarpur Terrace and the firm consisted of four partners. The said firm has raised loan from the appellant which they have not been able to re-pay. The appellant, however, has set off the amount lying in his personal saving account of the respondent and debited the entire such amount to the account of M/s. Virdi Industry Sansarpur Terrace. According to the respondent, the action of the appellant is illegal and arbitrary.
3. The allegations of the respondent have been controverted by the appellant exc
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